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As Amended by Senate Committee
Session of 2026
SENATE BILL No. 465
By Committee on Agriculture and Natural Resources
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AN ACT concerning corporations; relating to agricultural corporations;
including limited liability partnerships as an entity required to obtain
county approval to establish a dairy or swine production facility;
amending K.S.A. 17-5903, 17-5904, 17-5907 and 17-5908 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 17-5903 is hereby amended to read as follows: 17-
5903. As used in this act:
(a) "Corporation" means a domestic or foreign corporation organized
for profit or nonprofit purposes.
(b) "Nonprofit corporation" means a corporation organized not-for-
profit and which that qualifies under section 501(c)(3) of the federal
internal revenue code of 1986, as amended.
(c) "Limited partnership" has the meaning provided by means the
same as defined in K.S.A. 56-1a01 56-1a101, and amendments thereto.
(d) "Limited agricultural partnership" means a limited partnership
founded for the purpose of farming and ownership of agricultural land in
which:
(1) The partners do not exceed 10 in number;
(2) the partners are all natural persons, persons acting in a fiduciary
capacity for the benefit of natural persons or nonprofit corporations, or
general partnerships other than corporate partnerships formed under the
laws of the state of Kansas; and
(3) at least one of the general partners is a person residing on the farm
or actively engaged in the labor or management of the farming operation.
If only one partner is meeting the requirement of this provision and such
partner dies, the requirement of this provision does not apply for the period
of time that the partner's estate is being administered in any district court
in Kansas.
(e) "Corporate partnership" means a partnership, as defined in K.S.A.
56a-101, and amendments thereto, which that has within the association
one or more corporations or one or more limited liability companies.
(f) "Feedlot" means a lot, yard, corral, or other area in which
livestock fed for slaughter are confined. The term "Feedlot" includes
within its meaning agricultural land in such acreage as is necessary for the
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SB 465—Am. by SC 2
operation of the feedlot.
(g) "Agricultural land" means land suitable for use in farming.
(h) "Farming" means the cultivation of land for the production of
agricultural crops, the raising of poultry, the production of eggs, the
production of milk, the production of fruit or other horticultural crops,
grazing or the production of livestock. "Farming" does not include the
production of timber, forest products, nursery products or sod, and farming
does not include or a contract to provide spraying, harvesting or other farm
services.
(i) "Fiduciary capacity" means an undertaking to act as executor,
administrator, guardian, conservator, trustee for a family trust, authorized
trust or testamentary trust or receiver or trustee in bankruptcy.
(j) "Family farm corporation" means a corporation:
(1) Founded for the purpose of farming and the ownership of
agricultural land in which the majority of the voting stock is held by and
the majority of the stockholders are persons related to each other, all of
whom have a common ancestor within the third degree of relationship, by
blood or by adoption, or the spouses or the stepchildren of any such
persons, or persons acting in a fiduciary capacity for persons so related;
(2) all of its stockholders are natural persons or persons acting in a
fiduciary capacity for the benefit of natural persons; and
(3) at least one of the stockholders is a person residing on the farm or
actively engaged in the labor or management of the farming operation. A
stockholder who is an officer of any corporation referred to in this
subsection and who is one of the related stockholders holding a majority of
the voting stock shall be deemed to be actively engaged in the
management of the farming corporation. If only one stockholder is
meeting the requirement of this provision and such stockholder dies, the
requirement of this provision does not apply for the period of time that the
stockholder's estate is being administered in any district court in Kansas.
(k) "Authorized farm corporation" means a Kansas corporation, other
than a family farm corporation, all of the incorporators of which are
Kansas residents, family farm corporations or family farm limited liability
agricultural companies or any combination thereof, and which is founded
for the purpose of farming and the ownership of agricultural land in which:
(1) The stockholders do not exceed 15 in number; and
(2) the stockholders are all natural persons, family farm corporations,
family farm limited liability agricultural companies or persons acting in a
fiduciary capacity for the benefit of natural persons, family farm
corporations, family farm limited liability agricultural companies or
nonprofit corporations; and
(3) if all of the stockholders are natural persons, at least one
stockholder must be a person residing on the farm or actively engaged in
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labor or management of the farming operation. If only one stockholder is
meeting meets the requirement of this provision and such stockholder dies,
the requirement of this provision does not apply for the period of time that
the stockholder's estate is being administered in any district court in
Kansas.
(l) "Trust" means a fiduciary relationship with respect to property,
subjecting the person by whom the property is held to equitable duties to
deal with the property for the benefit of another person , which that arises
as a result of a manifestation of an intention to create it. A trust includes a
legal entity holding property as trustee, agent, escrow agent, attorney-in-
fact and in any similar capacity.
(m) "Family trust" means a trust in which:
(1) A majority of the equitable interest in the trust is held by and the
majority of the beneficiaries are persons related to each other, all of whom
have a common ancestor within the third degree of relationship, by blood
or by adoption, or the spouses or stepchildren of any such persons, or
persons acting in a fiduciary capacity for persons so related; and
(2) all the beneficiaries are natural persons, are persons acting in a
fiduciary capacity, other than as trustee for a trust, or are nonprofit
corporations.
(n) "Authorized trust" means a trust other than a family trust in
which:
(1) The beneficiaries do not exceed 15 in number;
(2) the beneficiaries are all natural persons, are persons acting in a
fiduciary capacity, other than as trustee for a trust, or are nonprofit
corporations; and
(3) the gross income thereof is not exempt from taxation under the
laws of either the United States or the state of Kansas.
For the purposes of this definition, if one of the beneficiaries dies, and
more than one person succeeds, by bequest, to the deceased beneficiary's
interest in the trust, all of such persons, collectively, shall be deemed to be
one beneficiary, and a husband and wife, and their estates, collectively,
shall be deemed to be one beneficiary.
(o) "Testamentary trust" means a trust created by devising or
bequeathing property in trust in a will as such terms are used in the Kansas
probate code.
(p) "Poultry confinement facility" means the structures and related
equipment used for housing, breeding, laying of eggs or feeding of poultry
in a restricted environment. The term "Poultry confinement facility"
includes within its meaning only such agricultural land as is necessary for
proper disposal of liquid and solid wastes and for isolation of the facility to
reasonably protect the confined poultry from exposure to disease. As used
in this subsection, "poultry" means chickens, turkeys, ducks, geese or other
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fowl.
(q) "Rabbit confinement facility" means the structures and related
equipment used for housing, breeding, raising, feeding or processing of
rabbits in a restricted environment. The term "Rabbit confinement facility"
includes within its meaning only such agricultural land as is necessary for
proper disposal of liquid and solid wastes and for isolation of the facility to
reasonably protect the confined rabbits from exposure to disease.
(r) "Swine marketing pool" means an association whose membership
includes three or more business entities or individuals formed for the sale
of hogs to buyers but shall . "Swine marketing pool" does not include any
trust, corporation, limited partnership, limited liability partnership or
corporate partnership , or limited liability company other than a family
farm corporation, authorized farm corporation, limited liability agricultural
company, limited agricultural partnership, family trust, authorized trust or
testamentary trust.
(s) "Swine production facility" means the land, structures and related
equipment used for housing, breeding, farrowing or feeding of swine. The
term "Swine production facility" includes within its meaning only such
agricultural land as is necessary for proper disposal of liquid and solid
wastes in environmentally sound amounts for crop production and to avoid
nitrate buildup and for isolation of the facility to reasonably protect the
confined animals from exposure to disease.
(t) "Limited liability company" has the meaning provided by means
the same as defined in K.S.A. 17-7663, and amendments thereto.
(u) "Limited liability agricultural company" means a limited liability
company founded for the purpose of farming and ownership of agricultural
land in which:
(1) The members do not exceed 10 in number; and
(2) the members are all natural persons, family farm corporations,
family farm limited liability agriculture companies, persons acting in a
fiduciary capacity for the benefit of natural persons, family farm
corporations, family farm limited liability agricultural companies or
nonprofit corporations, or general partnerships other than corporate
partnerships formed under the laws of the state of Kansas; and
(3) if all of the members are natural persons, at least one member
must be a person residing on the farm or actively engaged in labor or
management of the farming operation. If only one member is meeting the
requirement of this provision and such member dies, the requirement of
this provision does not apply for the period of time that the member's
estate is being administered in any district court in Kansas.
(v) "Dairy production facility" means the land, structures and related
equipment used for housing, breeding, raising, feeding or milking dairy
cows. The term "Dairy production facility" includes within its meaning
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SB 465—Am. by SC 5
only such agricultural land as is necessary for proper disposal of liquid and
solid wastes and for isolation of the facility to reasonably protect the
confined cows from exposure to disease.
(w) "Family farm limited liability agricultural company" means a
limited liability company founded for the purpose of farming and
ownership of agricultural land in which:
(1) The majority of the members are persons related to each other, all
of whom have a common ancestor within the third degree of relationship,
by blood or by adoption, or the spouses or the stepchildren of any such
persons, or persons acting in a fiduciary capacity for persons so related;
(2) the members are natural persons or persons acting in a fiduciary
capacity for the benefit of natural persons; and
(3) at least one of the members is a person residing on the farm or
actively engaged in the labor or management of the farming operation. If
only one member is meeting the requirement of this provision and such
member dies, the requirement of this provision does not apply for the
period of time that the member's estate is being administered in any district
court in Kansas.
(x) "Hydroponics" means the growing of vegetables, flowers, herbs ,
or plants used for medicinal purposes, in a growing medium other than
soil.
(y) "Limited liability partnership" means the same as defined in
K.S.A. 56a-101, and amendments thereto.
Sec. 2. K.S.A. 17-5904 is hereby amended to read as follows: 17-
5904. (a) No corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership, other than a
family farm corporation, authorized farm corporation, limited liability
agricultural company, family farm limited liability agricultural company,
limited agricultural partnership, family trust, authorized trust or
testamentary trust shall, either directly or indirectly, own, acquire or
otherwise obtain or lease any agricultural land in this state. The restrictions
provided in this section do not apply to the following:
(1) A bona fide encumbrance taken for purposes of security.
(2) Agricultural land when acquired as a gift, either by grant or
devise, by a bona fide educational, religious or charitable nonprofit
corporation.
(3) Agricultural land acquired by a corporation or a limited liability
company in such acreage as is necessary for the operation of a nonfarming
business. Such land may not be used for farming except under lease to one
or more natural persons, a family farm corporation, authorized farm
corporation, family trust, authorized trust or testamentary trust. The
corporation shall not engage, either directly or indirectly, in the farming
operation and shall not receive any financial benefit, other than rent, from
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SB 465—Am. by SC 6
the farming operation.
(4) Agricultural land acquired by a corporation or a limited liability
company by process of law in the collection of debts, or pursuant to a
contract for deed executed prior to the effective date of this act, or by any
procedure for the enforcement of a lien or claim thereon, whether created
by mortgage or otherwise, if such corporation divests itself of any such
agricultural land within 10 years after such process of law, contract or
procedure, except that the provisions of K.S.A. 9-1102, and amendments
thereto, shall apply to any bank which that acquires agricultural land.
(5) A municipal corporation.
(6) Agricultural land which is acquired by a trust company or bank in
a fiduciary capacity or as a trustee for a nonprofit corporation.
(7) Agricultural land owned or leased or held under a lease purchase
agreement as described in K.S.A. 12-1741, and amendments thereto, by a
corporation, corporate partnership, limited corporate partnership or trust
on the effective date of this act if: (A) Any such entity owned or leased
such agricultural land prior to July 1, 1965, provided such entity shall not
own or lease any greater acreage of agricultural land than it owned or
leased prior to the effective date of this act unless it is in compliance with
the provisions of this act; (B) any such entity was in compliance with the
provisions of K.S.A. 17-5901, prior to its repeal by this act, provided such
entity shall not own or lease any greater acreage of agricultural land than it
owned or leased prior to the effective date of this act unless it is in
compliance with the provisions of this act, and absence of evidence in the
records of the county where such land is located of a judicial
determination that such entity violated the provisions of K.S.A. 17-5901,
prior to its repeal, shall constitute proof that the provisions of this act do
not apply to such agricultural land, and that such entity was in compliance
with the provisions of K.S.A. 17-5901, prior to its repeal; or (C) any such
entity was not in compliance with the provisions of K.S.A. 17-5901, prior
to its repeal by this act, but is in compliance with the provisions of this act
by July 1, 1991.
(8) Agricultural land held or leased by a corporation or a limited
liability company for use as a feedlot, a poultry confinement facility or
rabbit confinement facility.
(9) Agricultural land held or leased by a corporation for the purpose
of the production of timber, forest products, nursery products or sod.
(10) Agricultural land used for bona fide educational research or
scientific or experimental farming.
(11) Agricultural land used for the commercial production and
conditioning of seed for sale or resale as seed or for the growing of alfalfa
by an alfalfa processing entity if such land is located within 30 miles of
such entity's plant site.
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SB 465—Am. by SC 7
(12) Agricultural land owned or leased by a corporate partnership or
limited corporate partnership in which the partners associated therein are
either natural persons, family farm corporations, authorized farm
corporations, limited liability agricultural companies, family trusts,
authorized trusts or testamentary trusts.
(13) Any corporation, either domestic or foreign, or any limited
liability company, organized for coal mining purposes which engages in
farming on any tract of land owned by it which has been strip mined for
coal.
(14) Agricultural land owned or leased by a limited partnership prior
to the effective date of this act.
(15) Except as provided by K.S.A. 17-5908, as it existed before the
effective date of this act, and K.S.A. 1998 Supp. 17-5909, agricultural land
held or leased by a corporation or a limited liability company for use as a
swine production facility in any county which, before the effective date of
this act, has voted favorably pursuant to K.S.A. 17-5908, as it existed
before the effective date of this act, either by county resolution or by the
electorate.
(16) Agricultural land held or leased by a corporation, trust, limited
liability company, limited liability partnership, limited partnership or
corporate partnership for use as a swine production facility in any county
where the voters, after the effective date of this act, have voted pursuant to
K.S.A. 17-5908, and amendments thereto, to allow establishment of swine
production facilities within the county.
(17) Agricultural land held or leased by a corporation, trust, limited
liability company, limited liability partnership, limited partnership or
corporate partnership for use as a dairy production facility in any county
which has voted favorably pursuant to K.S.A. 17-5907, and amendments
thereto, either by county resolution or by the electorate.
(18) Agricultural land held or leased by a corporation or a limited
liability company used in a hydroponics setting.
(19) Agricultural land held or leased by a limited liability
partnership prior to July 1, 2026.
(b) Production contracts entered into by a corporation, trust, limited
liability company, limited liability partnership, limited partnership or
corporate partnership and a person engaged in farming for the production
of agricultural products shall not be construed to mean the ownership,
acquisition, obtainment or lease, either directly or indirectly, of any
agricultural land in this state.
(c) Any corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership, other than a
family farm corporation, authorized farm corporation, limited liability
agricultural company, family farm limited liability agricultural company,
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SB 465—Am. by SC 8
limited agricultural partnership, family trust, authorized trust or
testamentary trust, violating the provisions of this section shall be subject
to a civil penalty of not more than $50,000 and shall divest itself of any
land acquired in violation of this section within one year after judgment is
entered in the action. The district courts of this state may prevent and
restrain violations of this section through the issuance of an injunction.
The attorney general or district or county attorney shall institute suits on
behalf of the state to enforce the provisions of this section.
(d) Civil penalties sued for and recovered by the attorney general
shall be paid into the state general fund. Civil penalties sued for and
recovered by the county attorney or district attorney shall be paid into the
general fund of the county where the proceedings were instigated.
Sec. 3. K.S.A. 17-5907 is hereby amended to read as follows: 17-
5907. (a) (1) The board of county commissioners, by resolution, may
permit or deny a dairy production facility, as defined in K.S.A. 17-5903,
and amendments thereto, to be established within the county by a
corporation, trust, limited liability company, limited liability partnership,
limited partnership or corporate partnership. Such resolution shall be
published once each week for two consecutive weeks in the official county
newspaper. The resolution shall take effect 60 days after final publication
unless a valid petition in opposition to the same is filed.
(2) If within 60 days of the final publication of the resolution, a valid
protest petition to submit the resolution to the qualified voters of the
county is signed by qualified electors of the county equal in number to not
less than 5% of the electors of the county who voted for the office of
secretary of state at the last preceding general election at which such office
was elected and is filed with the county election officer, the county
election officer shall submit the question, as established in subsection (c),
of whether a dairy production facility shall be allowed to be established in
such county at the next state, county or special election.
(b) (1) The board of county commissioners, upon a petition filed in
accordance with paragraph (b)(2), shall submit to the qualified electors of
the county a proposition to permit a dairy production facility, as defined in
K.S.A. 17-5903, and amendments thereto, to be established within the
county by a corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership.
(2) A petition to submit a proposition to the qualified voters of a
county pursuant to this section shall be filed with the county election
officer. The petition shall be signed by qualified electors of the county
equal in number to not less than 5% of the electors of the county who
voted for the office of secretary of state at the last preceding general
election at which such office was elected. The following shall appear on
the petition:
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SB 465—Am. by SC 9
"We request an election to determine whether a corporation, trust,
limited liability company, limited liability partnership, limited partnership
or corporate partnership shall be allowed to, either directly or indirectly,
own, acquire or otherwise obtain or lease any agricultural land in
________ county for the purpose of establishing a dairy production
facility."
(3) Upon the submission of a valid petition calling for an election
pursuant to this subsection, the county election officer shall submit the
question, as established in subsection (c), of whether a dairy production
facility shall be allowed to be established in such county at the next
countywide election which occurs more than 60 days after the petition is
filed with the county election officer.
(c) In any election established pursuant to this section, the following
shall appear on the ballot:
"Shall a corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership be allowed to,
either directly or indirectly, own, acquire or otherwise obtain or lease any
agricultural land in ________ county for the purpose of establishing a
dairy production facility?"
(d) If a majority of the votes cast and counted are in opposition to
allowing dairy production facilities to be established in such county, the
county election officer shall transmit a copy of the result to the secretary of
state who shall publish in the Kansas register the result of such election
and that dairy production facilities are not allowed to be established in
such county.
(e) If a majority of the votes cast and counted is in favor of the
proposition, the county election officer shall transmit a copy of the result
to the secretary of state who shall publish in the Kansas register the result
of such election and that dairy production facilities are allowed to be
established in such county.
(f) The election provided for by this section shall be conducted, and
the votes counted and canvassed, in the manner provided by law for
question submitted elections of the county.
Sec. 4. K.S.A. 17-5908 is hereby amended to read as follows: 17-
5908. (a) (1) The board of county commissioners, by resolution, may
permit or deny a swine production facility, as defined in K.S.A. 17-5903,
and amendments thereto, to be established within the county by a
corporation, trust, limited liability company, limited liability partnership,
limited partnership or corporate partnership. Such resolution shall be
published once each week for two consecutive weeks in the official county
newspaper. The resolution shall take effect 60 days after final publication
unless a valid petition in opposition to the same is filed.
(2) If within 60 days of the final publication of the resolution, a valid
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SB 465—Am. by SC 10
protest petition to submit the resolution to the qualified voters of the
county is signed by qualified electors of the county equal in number to not
less than 5% of the electors of the county who voted for the office of
secretary of state at the last preceding general election at which such office
was elected and is filed with the county election officer, the county
election officer shall submit the question, as established in subsection (c),
of whether a swine production facility shall be allowed to be established in
such county at the next state, county or special election.
(b) (1) The board of county commissioners, upon a petition filed in
accordance with paragraph (b)(2), shall submit to the qualified electors of
the county a proposition to permit a swine production facility, as defined in
K.S.A. 17-5903, and amendments thereto, to be established within the
county by a corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership.
(2) A petition to submit a proposition to the qualified voters of a
county pursuant to this section shall be filed with the county election
officer. The petition shall be signed by qualified electors of the county
equal in number to not less than 5% of the electors of the county who
voted for the office of secretary of state at the last preceding general
election at which such office was elected. The following shall appear on
the petition:
"We request an election to determine whether a corporation, trust,
limited liability company, limited liability partnership, limited partnership
or corporate partnership shall be allowed to, either directly or indirectly,
own, acquire or otherwise obtain or lease any agricultural land in _______
county for the purpose of establishing a swine production facility."
(3) Upon the submission of a valid petition calling for an election
pursuant to this subsection, the county election officer shall submit the
question, as established in subsection (c), of whether a swine production
facility shall be allowed to be established in such county at the next
countywide election which occurs more than 60 days after the petition is
filed with the county election officer.
(c) In any election established pursuant to this section, the following
shall appear on the ballot:
"Shall a corporation, trust, limited liability company, limited liability
partnership, limited partnership or corporate partnership be allowed to,
either directly or indirectly, own, acquire or otherwise obtain or lease any
agricultural land in ________ county for the purpose of establishing a
swine production facility?"
(d) If a majority of the votes cast and counted are in opposition to
allowing swine production facilities to be established in such county, the
county election officer shall transmit a copy of the result to the secretary of
state who shall publish in the Kansas register the result of such election
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SB 465—Am. by SC 11
and that swine production facilities are not allowed to be established in
such county.
(e) If a majority of the votes cast and counted is in favor of the
proposition, the county election officer shall transmit a copy of the result
to the secretary of state , who shall publish in the Kansas register the result
of such election and that swine production facilities are allowed to be
established in such county.
(f) The election provided for by this section shall be conducted, and
the votes counted and canvassed, in the manner provided by law for
question submitted elections of the county.
Sec. 5. K.S.A. 17-5903, 17-5904, 17-5907 and 17-5908 are hereby
repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
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